White House Official Urges Allies to Limit AI Regulations That Could Stifle Innovation

White House Tech Advisor Urges G7 Nations to Clear Regulatory Hurdles for AI Innovation

White House science and technology advisor Michael Kratsios called on governments to remove regulatory obstacles hindering artificial intelligence adoption during a G7 meeting in Montréal, warning that excessive regulation could stifle innovation in the rapidly evolving sector.

Speaking at the G7 Industry, Digital and Technology Ministers’ Meeting on Tuesday, Kratsios emphasized the need for a balanced approach that fosters private-sector innovation while maintaining necessary safeguards.

“The United States is committed to promoting private-sector-led development of AI systems, applications, and infrastructure, to protect and foster innovation. This primarily requires us to throw off regulatory burdens that weigh down innovators,” Kratsios said in his remarks obtained by Fox News Digital.

He acknowledged, however, that complete deregulation isn’t the answer. “Regulatory and non-regulatory policy frameworks that safeguard the public interest while enabling innovation are necessary to earn the public trust in AI technologies that will allow broad deployment and fast adoption,” he added.

In comments to Fox News Digital, Kratsios outlined the administration’s vision for its allies to build a “trusted AI ecosystem defined by smart, sector-specific regulations tailored to each nation’s priorities and designed to accelerate innovation.”

“Together, we can deliver transformative growth, keep critical data secure, and ensure the future of AI is built on freedom and human ingenuity,” he said.

The Trump administration has prioritized artificial intelligence development, appointing tech entrepreneur David Sacks as “AI czar” and issuing an executive order in January that rolled back many previous federal AI safety measures to accelerate deployment—a move that has drawn criticism from those who fear it could weaken important safeguards as the technology becomes more widespread.

President Trump announced on his Truth Social platform Monday that he plans to issue a “One Rule” executive order later this week establishing a single national framework for AI regulation. The president argues that America’s competitive edge in AI technology will be “destroyed in its infancy” without federal preemption of state regulations.

“We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS,” Trump wrote. “You can’t expect a company to get 50 Approvals every time they want to do something. THAT WILL NEVER WORK!”

The proposed federal preemption has faced significant pushback, particularly from some state governors. Florida Governor Ron DeSantis criticized the concept on social media, characterizing it as a “subsidy” to technology companies that would prevent states from protecting against online censorship, applications targeting children, intellectual property violations, and resource allocation issues.

“The rise of AI is the most significant economic and cultural shift occurring at the moment; denying the people the ability to channel these technologies in a productive way via self-government constitutes federal government overreach and lets technology companies run wild,” DeSantis wrote. “Not acceptable.”

The debate highlights the complex balance governments are attempting to strike as artificial intelligence transforms industries and societies. While the United States pushes for less restrictive regulations to maintain global leadership in AI development, concerns about safety, ethics, and state sovereignty continue to complicate the regulatory landscape.

Industry analysts note that the global race for AI dominance has significant geopolitical and economic implications, with China, the European Union, and other major economies developing their own approaches to AI governance. The EU has moved forward with its comprehensive AI Act, which takes a more cautious, risk-based regulatory approach than what the Trump administration appears to be pursuing.

As AI technologies continue to advance rapidly, the regulatory frameworks established now will likely shape the development and deployment of these systems for years to come, affecting everything from economic growth and national security to privacy and civil liberties.